PROFITABILITY AND LIQUIDITY OF TRADING COMPANIES IN THE REPUBLIC OF SERBIA
Abstract
Bearing in mind that the commercial sector is considered the most vital and the most resistant part of the economy, there was a need to examine the profitability of trading companies. The sample consists of 41 trading companies of medium and large size that operate in the Republic of Serbia. Analyzed companies are engaged in retail, wholesale and motor vehicles trade. The results of the research showed that the gross and net profit margins in the observed years are on average higher in the middle sized compared to large sized trading enterprises. Middle sized trading companies on average have rate of return on assets higher for approximetely 2% then large trading companies, while their rate of return on invested capital is on average higher for 8% to 10%. Average values of net and gross profit margins are highest for companies that are engaged in trade of motor vehicles, and the lowest for retail companies. Wholesale companies and companies that are engaged in trade of motor vehicles are liquid, while retail companies are illiquid.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).